Pre Session-Gap down opening on the cards for Sensex as Asia rally fades
05/07/2016
Indian equity benchmarks may witness a negative opening on Tuesday with traders likely to resort to profit taking after a six-day rally while weakness across most fellow Asian equities as post-Brexit optimism ebbed, may also sour the appetite for risky assets. Losses in the CNX Nifty Index Futures for July delivery, which fell by 0.31 per cent or by 26 points to 8,366 at 10:34 AM Singapore time signal that Dalal Street may open lower today. The focus today will be on the June Services PMI data which will offer further cues over the health of Asia’s third biggest economy. In May, the country’s services gauge hit a six-month low of 51, but remained above the no-change 50 mark. However, continued hopes over the passage of the crucial GST bill in the upcoming monsoon session of Parliament, strong progress of the southwest monsoon and a recovery in corporate earnings may support local bourses. Marking a sixth straight day of gains, the 30-share Sensex on Monday jumped by 133.85 points or by 0.49 per cent to end at the highest level in eight months at 27,278.76 as a pickup in the monsoon buoyed sentiment. Heavy rains over the weekend meant that the rainfall deficit shrank to 6 per cent, much lower than the 18 per cent in the first week of June, data showed.
Most Asian stocks declined as caution returned to haunt traders as post Brexit optimism faded as traders weighed rising political risk in Europe amidst a flurry of elections in the region next year and the looming Brexit negotiations with the EU. Hang Seng succumbed to significant losses, Japan’s Nikkei 225 fell as the yen’s strength dimmed the lure for exporter stocks but China’s Shanghai Composite rose as a gauge measuring services activity climbed to 52.7 in June, up from 51.2 in May, signaling a quickening in the pace of growth in the world’s second biggest economy. Wall Street was closed on Monday on account of the Independence Day Holiday.
05/07/2016
Indian equity benchmarks may witness a negative opening on Tuesday with traders likely to resort to profit taking after a six-day rally while weakness across most fellow Asian equities as post-Brexit optimism ebbed, may also sour the appetite for risky assets. Losses in the CNX Nifty Index Futures for July delivery, which fell by 0.31 per cent or by 26 points to 8,366 at 10:34 AM Singapore time signal that Dalal Street may open lower today. The focus today will be on the June Services PMI data which will offer further cues over the health of Asia’s third biggest economy. In May, the country’s services gauge hit a six-month low of 51, but remained above the no-change 50 mark. However, continued hopes over the passage of the crucial GST bill in the upcoming monsoon session of Parliament, strong progress of the southwest monsoon and a recovery in corporate earnings may support local bourses. Marking a sixth straight day of gains, the 30-share Sensex on Monday jumped by 133.85 points or by 0.49 per cent to end at the highest level in eight months at 27,278.76 as a pickup in the monsoon buoyed sentiment. Heavy rains over the weekend meant that the rainfall deficit shrank to 6 per cent, much lower than the 18 per cent in the first week of June, data showed.
Most Asian stocks declined as caution returned to haunt traders as post Brexit optimism faded as traders weighed rising political risk in Europe amidst a flurry of elections in the region next year and the looming Brexit negotiations with the EU. Hang Seng succumbed to significant losses, Japan’s Nikkei 225 fell as the yen’s strength dimmed the lure for exporter stocks but China’s Shanghai Composite rose as a gauge measuring services activity climbed to 52.7 in June, up from 51.2 in May, signaling a quickening in the pace of growth in the world’s second biggest economy. Wall Street was closed on Monday on account of the Independence Day Holiday.
